More Africa NewsAxian raises $158.3 million from JPMorgan Chase Bank to support its activities in Tanzania and Madagascar

September 1, 2023by myles0

Axian Telecom wants to strengthen its presence in the African telecom market. The company recently signed an agreement to increase its stake in telecoms operator Free Senegal to 80%.

Telecommunications company Axian Telecom has obtained a loan totaling USD 158.3 million from the American bank JPMorgan Chase Bank NA to support its activities in Tanzania and Madagascar. The two parties concluded a term credit agreement for this purpose on July 19. The transaction was revealed in Axian Telecom’s Q2 2023 financial results.

The financing is made up of two facilities. It is expected to enable Axian Telecom to repay its past capital expenditures and effectively finance future capital expenditures required to complete its ongoing network modernization programs in Tanzania and Madagascar.

The network modernization undertaken by Axian Telecom in Tanzania and Madagascar is necessary given the growing demand for high-speed connectivity prevailing in these two countries. In March, the company signed a partnership agreement with Ericsson for the modernization of the telecoms networks of Telma Madagascar and Tigo Tanzania. In addition to the modernization and expansion of the 4G network, the two partners launched 5G in Tanzania.

These various initiatives should enable the two Axian Telecom subsidiaries to strengthen their positions in their respective markets. In Madagascar, Telma competes for the national telecoms market with Orange. As for Tigo Tanzania, it competes with TTCL, Halotel, Vodacom and Airtel.

Source: Agence Ecofn

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